Warehouse Wisdom. Weekly. 05/02/2025

Happy Friday!

As a result of the trade war, both the U.S. economy and Chinese exports to America have taken a hit. Chinese shipments to the U.S. are down over 20%, while U.S. GDP decided to follow suit with a quiet contraction in Q1. Even McDonald’s is feeling the effects. It’s a reminder that when two giants throw punches over tariffs, everyone ends up a little bruised, including your quarterly reports. So, no, it’s not just you.

Stick around as we unpack the week’s biggest logistics and freight news, including UPS trimming its workforce, Amazon's selective transparency on tariffs (spoiler: still not showing them at checkout), OpenAI’s latest rollout, and fresh rounds of tariff price hikes that are sure to pair nicely with your next procurement headache. Let’s dive in.

Small Parcel Freight

UPS cuts, Amazon expands, and Canada Post flirts with chaos

UPS is trimming 20,000 jobs in an effort to “align with demand,” which is corporate-speak for “we didn’t get as many Prime Day leftovers as we hoped.” After losing a major chunk of its volume to Amazon, the company is slimming down to stay competitive, and presumably to avoid awkward quarterly earnings calls that begin with a deep sigh.

Meanwhile, Amazon is spending $4 billion to expand its rural delivery network. The move aims to reach deeper into areas traditional carriers struggle with, proving once again that Amazon is fully committed to delivering everything, everywhere, all at once.

North of the border, Canada Post and its union have returned to the negotiating table ahead of a looming contract expiration. Talks are ongoing, and while no strike has been declared yet, the risk remains on the table, just in case the logistics industry needed another source of potential disruption to throw into the mix.

Global Logistics

Hidden fees, hefty shipments, and France’s new tax hobby

Amazon has confirmed it won’t be breaking out tariff costs at checkout, leaving shoppers to enjoy the timeless retail tradition of surprise fees baked invisibly into the final price. The company says it’s too complicated to separate the numbers, which is a polite way of saying “just trust us.” A win for simplicity, and a settling of tension with government.

In other news, DHL has resumed global shipments to the U.S. for packages over $800, a service it had paused due to, you guessed it, the trade war. Companies can once again import high-ticket items without using a freight forwarder with a side hustle in wizardry.

And over in France, officials are proposing extra fees on small parcels coming from outside the EU, citing concerns over tax fairness and "supporting local businesses." So if you were planning on shipping a €10 phone case to Marseille, brace yourself, it might soon come with the shipping cost of a Vespa.

Logistics Vitals

Tariffs are up, shelves may be next

E-commerce is currently experiencing a deceptive calm, as the full impact of escalating U.S.-China trade tensions has yet to materialize. Despite high U.S. tariff revenues in April, the anticipated effects on shipment volumes and consumer prices remain subdued. However, industry experts warn that this tranquility may soon give way to significant disruptions. Key data points from the article:

• U.S. tariff revenue surged to over $17 billion in April, more than double the 2024 monthly average of $8 billion.

• Import volumes at the Port of Los Angeles declined by 30% week-over-week and 10% year-over-year, though a rebound is forecasted within two weeks.

• Amazon pricing data shows no widespread price increases yet, indicating that the impact on consumer prices is still pending.

• Industry leaders express concern, with one stating, “A full-blown supply chain disaster is looming,” and another asserting, “It’s not just looming, it’s inevitable at this point.”

• Retail executives from major companies have reportedly warned that current tariff policies could lead to empty shelves in the coming weeks.

Marketplaces

AI, Instant Commerce, and the race to deliver before you even click “buy”

OpenAI has officially joined the retail party, rolling out new shopping features in ChatGPT that let users search for products, compare reviews, and even click on direct purchase links, all without leaving the chat. It’s a dream come true for anyone who’s ever thought, “What if my chatbot could also help me impulse-buy throw pillows at 2 a.m.?” Retailers, take note: your next competitor might be an AI with better product recommendations than your entire marketing team.

Not to be outdone, Alibaba has launched its own “Instant Commerce” platform, which promises rapid delivery that borders on precognition. Designed to compete with China’s other e-commerce heavyweights, the platform blends real-time order fulfillment with ultra-fast delivery windows, because two-day shipping is now considered sluggish and deeply offensive to the modern shopper.

Warehouse and Logistics Tech

UPS eyes humanoid robots

UPS is reportedly in discussions with robotics startup Figure AI to explore the deployment of humanoid robots within its logistics operations. The robots under consideration are Figure AI’s flagship model, the Figure 02, a bipedal, AI-powered humanoid standing 5 feet 6 inches tall and capable of lifting up to 20 kilograms. Designed to operate in environments built for humans, these robots are intended to perform physically repetitive tasks such as lifting, sorting, and transporting packages. The initiative is currently in an exploratory phase, with UPS expected to begin with pilot tests rather than immediate large-scale deployment.

Warehouse Quick Deliveries

More and more tariff news…

• Temu and Shein Raise Prices in response to US tariffs.

• Amazon reportedly pushing suppliers for discounts to combat tariffs.

• And there are some companies that may stand to gain in this tariff environment.